Hello Everyone,
I am here to share the stocks which I believe are fairly valued after looking at their fundamentals. I have assumed growth after looking at the history of the company, future prospects of that Industry and India. As the nation is supposed to grow at a CAGR of 6.3% till 2040, the markets are bound to do well and grow. I am optimistic about the Indian story and I believe in the saying, it's an Asian and Indian Century.
I have been analyzing quite a lot of stocks lately and following are the stocks which, I believe, are fairly valued to their fundamentals. I might miss on the Blue Chips, they indeed are good stocks but costly from my perspective. I look at few things while analyzing the stock. One of the important thing that I look at is the Debt share and the EBIT margins of the company. If the Debt is high and the EBIT margins are low, it becomes very difficult for me to think of buying that stock. I look at the Capex required to generate the growth which we have assumed. I look at the Cash Flow from Operations with a view to check if there is anything suspicious to be worried about.
I discount back the Free cash flow at a discount rate derived using CAPM. I deduct Debt and add cash to EV to get the Equity Value. I compare that to the Market Cap to see how fairly the company is valued.
Markets are irrational. Investors behave in an ecstatic manner on a good stock and Operators on a Bad stock.
Following are the 30 shares which I believe should provide good returns in the future. I haven't analyzed Banking stocks as yet. I think it's difficult currently to assume the NPA's. I will wait for the Annual report to come to form any opinion.
1) Marksans Pharma
2) E-clerx
3) Time Technoplast
4) Kolte Patil
5) Brigade
6) ITC
7) Exide
8) Nitin Spinners
9) Cox & Kings
10) Eros
11) Gabriel
12) HCL
13) Lupin
14) Lincoln Pharma
15) Banco
16) Suprajit
17) Jagran
18) Brooks
19) DB Corp
20) Munjal Auto
21) Munjal Showa
22) Aarti Drugs
23) Apollo Tyres
24) Gujarat Alkalies
25) Vardhman Textiles
26) Tata Motors
27) Harita Seating
28) Sobha
29) Madhav Marbles and
30) UPL
I hold one stock in each of these companies. Just to know make sure that I don't have to retract to the excel file but to the demat account ledger.
Unless any accounting/calamity/Notice Issued/ or any other problem crops up, I don't see any issue from the valuation perspective. As happened in the case of Eros Media, after an analyst reported to have believed that the companies accounting policies were not up to the mark, the shares tanked tremendously. The management got an Internal review done and the report said that the policies are in line with the law. The shares have not jumped anywhere close to what it was trading at, giving us an opportunity to buy. The only bad thing can happen is that the Firm appointed was in cahoots with the Management, which is a very dangerous belief to believe. As in the current case with Apollo tyres, the stock has tanked near around 7% on the Panama Paper leaks story. If you know for sure that the company is just not right, then it is a totally different ball game (Kindly let me know about that too).
There can be something that I might be missing on these stocks and I would love to hear from you guys. Don't buy before satisfying yourself.
Thanks.
I am here to share the stocks which I believe are fairly valued after looking at their fundamentals. I have assumed growth after looking at the history of the company, future prospects of that Industry and India. As the nation is supposed to grow at a CAGR of 6.3% till 2040, the markets are bound to do well and grow. I am optimistic about the Indian story and I believe in the saying, it's an Asian and Indian Century.
I have been analyzing quite a lot of stocks lately and following are the stocks which, I believe, are fairly valued to their fundamentals. I might miss on the Blue Chips, they indeed are good stocks but costly from my perspective. I look at few things while analyzing the stock. One of the important thing that I look at is the Debt share and the EBIT margins of the company. If the Debt is high and the EBIT margins are low, it becomes very difficult for me to think of buying that stock. I look at the Capex required to generate the growth which we have assumed. I look at the Cash Flow from Operations with a view to check if there is anything suspicious to be worried about.
I discount back the Free cash flow at a discount rate derived using CAPM. I deduct Debt and add cash to EV to get the Equity Value. I compare that to the Market Cap to see how fairly the company is valued.
Markets are irrational. Investors behave in an ecstatic manner on a good stock and Operators on a Bad stock.
Following are the 30 shares which I believe should provide good returns in the future. I haven't analyzed Banking stocks as yet. I think it's difficult currently to assume the NPA's. I will wait for the Annual report to come to form any opinion.
1) Marksans Pharma
2) E-clerx
3) Time Technoplast
4) Kolte Patil
5) Brigade
6) ITC
7) Exide
8) Nitin Spinners
9) Cox & Kings
10) Eros
11) Gabriel
12) HCL
13) Lupin
14) Lincoln Pharma
15) Banco
16) Suprajit
17) Jagran
18) Brooks
19) DB Corp
20) Munjal Auto
21) Munjal Showa
22) Aarti Drugs
23) Apollo Tyres
24) Gujarat Alkalies
25) Vardhman Textiles
26) Tata Motors
27) Harita Seating
28) Sobha
29) Madhav Marbles and
30) UPL
I hold one stock in each of these companies. Just to know make sure that I don't have to retract to the excel file but to the demat account ledger.
Unless any accounting/calamity/Notice Issued/ or any other problem crops up, I don't see any issue from the valuation perspective. As happened in the case of Eros Media, after an analyst reported to have believed that the companies accounting policies were not up to the mark, the shares tanked tremendously. The management got an Internal review done and the report said that the policies are in line with the law. The shares have not jumped anywhere close to what it was trading at, giving us an opportunity to buy. The only bad thing can happen is that the Firm appointed was in cahoots with the Management, which is a very dangerous belief to believe. As in the current case with Apollo tyres, the stock has tanked near around 7% on the Panama Paper leaks story. If you know for sure that the company is just not right, then it is a totally different ball game (Kindly let me know about that too).
There can be something that I might be missing on these stocks and I would love to hear from you guys. Don't buy before satisfying yourself.
Thanks.
